patrick.net

housing market doesn't care that you're impatient. it'll correct when it corrects. it's an incredibly slow process.

you have all the power. you decide if you'll buy now, or wait for the market to come to you.

most people buy as soon as they can because they want instant gratification and lack discipline.

i prefer to be the last one to buy after everyone else. i like investing (not houses but stocks/bonds) and know how important it is to be patient.

Hysteresis says

i prefer to be the last one to buy after everyone else. i like investing (not houses but stocks/bonds) and know how important it is to be patient.

Why don't you just invest in a deluxe coffin.. Because you'll be spending far more time in that then your home if you are hoping to be the "last one to buy"! :)

LAO says

Hysteresis says

i prefer to be the last one to buy after everyone else. i like investing (not houses but stocks/bonds) and know how important it is to be patient.

Why don't you just invest in a deluxe coffin.. Because you'll be spending far more time in that then your home if you are hoping to be the "last one to buy"! :)

maybe i should've clarified: last one to buy after all the bubble heads bought...

If your waiting for the 1% to lose their homes, you be waiting quite a long time. With that kind of money/backing you should be able to wheel and deel.

Timing the market is difficult. My advise is rather than try to forecast when (or if) prices will drop –know what you can spend and stick to it. Try to find value, but be realistic – the price the market will bear may be more than your personal “valuation”. You can’t compete with stupid. Rates are still low and prices aren’t going up rapidly any time soon so as of right now, time is still on your side. Heck I’ve been waiting for over ten years – no exaggeration.

At some point personal circumstances may necessitate you make a move – even if it is reluctantly. So long as you are in the game for the long haul (ten plus years) and don’t stretch to the limit of your means, you should end up fine no matter what.

Way I see it if you got millions to spend on a house, you shouldn't worry about bubbles.

nw888 says

it's taking much longer than the rest of the housing market.

The name of the game is kick the can down the road.

Hysteresis says

it's an incredibly slow process.

Do you understand the science of can kicking? Our politicians are deliberately slowing down the correction in hopes of maintaining the supposed status quo.

EastCoastBubbleBoy says

Rates are still low and prices aren’t going up rapidly any time soon so as of right now

We're in the ZIRP Liquidity trap. Rates cannot go up a significant amount.

You know what is getting even older? All that lumber on the 25-40 year old million dollar homes. Go ahead, buy one and break it down and see.

I agree with other comments, though. The price range you are considering puts you in a class where conventional mortgages hardly play. These owners are normally much more wealthy than just the house, so can weather better as you can see. The problem is people who had all their wealth (leveraged 5-1, sometimes 10-1, sometimes infinity-1) and now are poorer than when they were born. Sucks

Outside of Santa Monica and the Palisades, you can buy a lot of house with 1.4 to 2.2M, and prices have come down form the peak. Granted the price ranges that have been the most affected have been condos under 1M.